Digital composite image of Chinese Temple Foo Dog Lion guard statue with Shanghai's Pudong District's skyscrapers in the background. Image credit: FangXiaNuo via iStock
This analysis paper evaluates China's climate-related development finance from 2013 to 2021, revealing its significant but often opaque contributions. It provides insights into China's contributions to the international climate finance architecture in advance of COP 29 and the upcoming New Collective Quantified Goal on climate finance (NCQG) agreement. It indicates that China has provided an annual average of nearly US$4 billion for climate to developing countries, totaling over US$34 billion by 2021. Most of this support has been channelled through bilateral lending from China's policy banks, although there has been a recent substantial increase in climate finance through multilateral institutions. However, there has been a decline in China’s bilateral climate-relevant finance, coupled with significant ongoing fossil fuel investments in developing countries, which have exceeded its climate-relevant finance over the period. Despite being a recipient of climate finance, China is now a net provider of climate support, positioning itself to contribute to a new UN climate finance goal beyond 2025. The paper also highlights that China has been offering assistance similar to loss and damage support to climate-vulnerable countries on a bilateral basis.